French insurance giant AXA Group and its partner in the UAE, Kanoo Group, plan to become major shareholders in the UAE's Green Crescent Insurance Co (GCIC), GCIC said on Sunday.

The firm has called a shareholder meeting on March 26 "to consider resolutions to expand the capital base of GCIC and forge a long-term strategic alliance with AXA Group and its UAE partner, the Kanoo Group", it said in a statement.

If the deal is approved, "AXA Group and Kanoo Group would be the primary investors of a capital increase of 100 million dirhams ($27 million) via a convertible bond instrument" that would push GCIC's capital to 200 million dirhams on conversion.

The statement did not elaborate on the sizes of the stakes that AXA and Kanoo would own in GCIC, or give details of the nature of the alliance.

GCIC provides health and life insurance services in the UAE, where the two largest emirates, Abu Dhabi and Dubai, have mandatory health insurance regulations in place.  -Reuters